In the US, April inflation data will be released, which will help to see if there were signs of peak price growth in the US. Stablecoin Terra USD is still in trouble, as is Coinbase stock after a weak quarter for crypto traders. However, the U.S. stock market will open in the plus side on confidence that a 75 basis point interest rate hike in the U.S. seems unlikely. The Walt Disney Company will report after the market close. Oil prices rise as Shanghai reported no new cases of COVID-19 diseases and the conflict in Ukraine disrupted gas flows to Europe for the first time. Here’s what you need to know about the financial market on Wednesday, May 11.

1. CPO DATA IN THE U.S. MAY SHOW WHETHER THERE WAS A PEAK IN MARCH

The overall U.S. inflation rate is expected to have eased in April as last year’s rise in used car prices began to disappear from the annualized calculation.

If the consensus forecast for it to fall to 8.1% from 8.5% in March is confirmed at 08:30am ET (12:30pm GMT), there could be some much-needed relief in bond and equity markets. However, the more important data may be the monthly growth data when core CPI growth is expected to accelerate from 0.3% to 0.4%. The overall CPI is expected to slow sharply from 1.2% to 0.2% due to energy prices.

A series of speeches by U.S. Federal Reserve officials on Tuesday indicated that the Fed does not currently intend to bring a 75 basis point rate hike back on the table, although Loretta Mester of Cleveland warned that “you should never say never”.

Others drew attention to the fact that the Fed’s actions are already easing tensions in the housing market, which should be emphasized by the weekly mortgage applications data (which will be released at 07:00 Eastern Time (11:00 GMT)).

2. TERRA USD FELL AS THE BUYBACK PLAN FAILED TO GAIN MOMENTUM

The Terra USD stackcoin and Luna token weakened the day before as the rescue plan launched by Do Kwon and other creators of the blockchain at the heart of the currency failed to restore confidence in the assets.

By 06:30am ET (11:30am GMT), the Terra USD stablecoin was trading just above 49 cents, 2 days after its peg to the dollar effectively broke. However, it’s still above the intraday low of 27 cents.

Kwon has sketched out several ideas on Twitter over the past hour to restore the peg. However, he acknowledged that the pressure from the buyback is likely to remain strong in the near term.

Kwon and Luna Foundation Guard, a group of crypto investors, have provided about $1.5 billion in bitcoins and dollars to traders who typically maintain a stable peg. Whether this will be enough to meet the overall demand for ransomware remains to be seen.

Unlike Tether and USD Coin, the only two major stable currency projects, Terra USD is backed only by an algorithm.

3. US MARKET TO OPEN HIGHER; TOYOTA, COINBASE REPORTS DISAPPOINT; DISNEY TO REPORT

U.S. stock indexes are set to open higher, albeit subdued, ahead of the release of consumer price index data, after finding at least a short-term bottom on Tuesday.

By 06:15 a.m. ET (10:15 a.m. GMT), Dow Jones futures were up 238 points, or 0.8%, while S&P 500 futures were up 0.9% and Nasdaq 100 futures were up 1.1%.

The stock likely to be in the spotlight is Coinbase, which fell 12% after Tuesday’s close following disappointing results. Comments from SEC chief Gary Gensler accusing cryptocurrency exchanges of trading not in the best interest of their customers are unlikely to improve sentiment towards its shares. Also in the spotlight will be Toyota, whose shares hit a 2-month low after detailing plant closures due to COVID-19, and Electronic Arts, which held up well amid general weakness in technology this quarter.

Among the first companies to report on Wednesday were Fiverr , Perrigo , Krispy Kreme and Wendy’s Walt Disney will get the most attention after the close of trading.

4. HOUSE OF REPRESENTATIVES APPROVES $40 BILLION AID DEAL FOR UKRAINE

The U.S. House of Representatives approved a $40 billion aid package for Ukraine, but the bill was delayed in the Senate due to complaints about a lack of details and concerns that it could be tied to another COVID-19 funding bill.

The package includes about $18.7 billion in military aid.

Meanwhile, the flow of natural gas to Europe through Ukraine has declined. European natural gas prices rose sharply at the opening bell but quickly reversed back. However, the long-term question of what to replace Russian gas with this winter remains unanswered.

5. OIL PRICES RISE AMID HOPES FOR COVID-19 IN SHANGHAI

Crude oil prices rebounded after Chinese health authorities reported no new cases of COVID-19 illnesses in Shanghai on Tuesday, bringing the end of a 2-month quarantine closer. Shanghai’s problems have affected the economies of neighboring regions, causing oil demand in China to plummet in recent weeks.

By 06:30 a.m. ET (10:30 a.m. GMT), WTI crude futures were up 3.3 percent to $103.06 and Brent crude was up 3.1 percent to $105.64.

At 10:30 a.m. ET (2:30 p.m. GMT), the U.S. will release official data on oil inventories. Data from the American Petroleum Institute showed an unexpected 823,000 barrel increase in crude inventories, further evidence that record high gasoline and diesel prices are dampening demand.